Financial Results for the Second Quarter Ended April 30, 2016
[Japan GAAP] (Consolidated)
Date:

June 2, 2016

Company Name and Code:

Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(URL: http://www.tomo-e.co.jp/index_e.html)
stStock exchange listing:

1 Section, Tokyo Stock Exchange

Head Office:5-15, Kitashinagawa 5-chome, Shinagawa-ku, Tokyo, Japan

President:

Hitoshi Yamamoto

Investor Relations Contacts:

Toshiaki Yakura, Director, General Manager of Accounting Division, Tel: (03) 3442-5127

Date to report Quarterly Consolidated Financial Statement: June 13, 2016
Date for Dividend Payment:

July 4, 2016

Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Yes
Briefing Session for Quarterly Operating Results: Yes (for institutional investors)* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Data for the Second Quarter Ended April 30, 2016
(1) Results of Operation (Consolidated)

Quarter Ended April 30, 2016
Quarter Ended April 30, 2015

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions of
Yen
Percent
Yen
Percent
Yen
Percent
19,847
-1.2
918
-1.7
789
-32.0
20,086
0.6
934
10.5
1,161
13.4

Quarter Ended April 30, 2016
Quarter Ended April 30, 2015

Net Income Attributable to
Owners of the Parent
Millions of
Yen
Percent
505
-45.2
923
19.2

Net Income per Share

Fully Diluted Quarterly
Net Income per Share

Yen
69
50.
50
92.

Yen
-

(Note) Comprehensive income
Second Quarter ended April 30, 2016: 267 million yen (-77.2%)

Second Quarter ended April 30, 2015: 1,175 million yen (40.2%)(2) Financial Condition (Consolidated)

Quarter Ended April 30, 2016
Year Ended October 31, 2015

Total Assets (A)(Millions of Yen)
34,74734,341Net Assets (B)(Millions of Yen)
25,24325,200Net Assets Ratio(B) / (A) (Percent)
72.6
73.4

(Reference) Net assets
Second Quarter ended April 30, 2016: 25,243 million yen

Year Ended October 31, 2015: 25,200 million yen

2. Dividend Status(Record Date)
Year Ended October 31, 2015
Year Ending October 31, 2016
Year Ending October 31, 2016 (Prospect)First
Quarter-Interim
Term
50
22.
50
22.

Annual Dividend (Yen)Third
End ofQuarter
Fiscal Year
50
22.

(Note) Revisions since the most recently released dividend projection: None

-

50

22.

Annual
00

45.

00

45.

3. Forecast for Earnings for the Year Ending October 31, 2016 (Consolidated)(Percent change from the previous Full Business Year)Net Sales
Operating Income
Ordinary Income(Millions of Yen) (Percent) (Millions of Yen) (Percent) (Millions of Yen) (Percent)
Full Business Year41,800
6.2
1,320
-4.9
1,300
-21.9
Net Income Attributable to Net Income per ShareOwners of the Parent(Millions of Yen) (Percent)Yen
14
Full Business Year
660
-35.8
66.
(Note) Revisions since the most recently released dividend projection: None
Notes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
Number of new subsidiaries: __(Company names):
Number of eliminated subsidiaries: __(Company names):(2) Adoption of simplified accounting method and the specific accounting method: None
(3) Changes of the principles, procedures, and representation of the accounting policies
1) Change due to revision of accounting standard: Existing2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
For more information, please refer to the supporting data on page 4, “Matters Concerning Summary
Information (Notes), Changes in accounting principles, changes in accounting estimates and retrospective
restatements”.
(4) Number of outstanding shares (Common stock)1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At April 30, 2016: 10,533,200 shares

At October 31, 2015: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At April 30, 2016: 554,667 shares

At October 31, 2015: 554,667 shares

3) Number of average shares (accumulated quarterly total)
At April 30, 2016: 9,978,533 shares

At April 30, 2015: 9,978,533 shares*Disclosure concerning status of implementation of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financial Instruments
and Exchange Act. At the time of disclosure of this quarterly earnings report, the Company has not completed aquarterly review procedure based on the Financial Instruments and Exchange Act.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could
differ materially due to various factors. Please refer to the Financial Results for the Quarter (Attachments) on page 3,(3) [Analysis of Future Forecast on Consolidated Earnings Forecast] of 1. [Qualitative Information on Quarterly
Consolidated Operating Results] for the operating results forecast.

Table of Contents (Supporting Data)

1. Qualitative Information on Quarterly Consolidated Operating Results...................................................................2(1) Analysis of Operating Results................................................................................................................................2(2) Analysis of Financial Condition..............................................................................................................................3(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast.......................................................3
2. Matters Concerning Summary Information (Notes)...........................................................................................4(1) Changes to material subsidiaries during the consolidated cumulative second quarter..................4(2) Application of special accounting method in the preparation of quarterly consolidated financial
statements......................................................................................................................................4(3) Changes in accounting principles, changes in accounting estimates and retrospective restatements...4(4) Additional Information..............................................................................................................................4
3. Quarterly Consolidated Financial Statement...........................................................................................................5(1) Quarterly Consolidated Balance Sheet. ................................................................................................5(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
Income......................................................................................................................................7
Quarterly Consolidated Statements of Income.....................................................................................................7
Quarterly Consolidated Statements of Comprehensive Income.........................................................................8(3) Quarterly Consolidated Statements of Cash Flows………………………………………………..9(4) Notes for Quarterly Consolidated Financial Statements……………………………………………………..11(Note for premise of going concern)……………………………………………………………...11(Notes for significant changes in shareholder’s equity)…………………………………………...11(Segment information) ………………………………………………………………………………...11
4. Overseas Net Sales (Supplemental Information)...................................................................................................121

1. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the consolidated second quarter under review, Japan’s economy was restrained by concerns that put
downward pressure on growth, despite a swing toward rising exports against the backdrop of a recovery inEurope’s business climate. Corporate business sentiment and consumer confidence were dampened by theeffects of unsteady movements in stock prices and exchange rates observed daily, and capital spending andhousing investment lacked strength as well. The economy also was buffeted by the impact of the Kumamoto
earthquake. Overseas, the U.S. economic recovery lacked vigor, China’s readjustments were protracted, andthe recovery in newly developing countries and oil-producing states lagged as well, and overall, the circumstances
surrounding the future outlook were opaque.
Given these circumstances, net sales for the Tomoe Engineering Group for the consolidated second quarterslipped 1.2% from the same period last year to 19,847 million yen mainly because of decreasing sales in both
the Machinery & Equipment Business and Chemical Products Business. From an earnings aspect, profits werehigher in the Chemical Products Business, but operating income was 918 million yen, 1.7% down from the same
period last year because of lower net sales in the Machinery & Equipment Business, while ordinary income came to789 million yen, 32.0% down from the same period last year because of foreign exchange losses. Profit
attributable to owners of the parent was 505 million yen, 45.2% down from the same period last year.
Operating results by segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, consolidated net sales for the year-to-date period were 5,002 million yen,
1.3% down from the same period last year. Net sales of machinery, equipment and works, and components andrepair services for domestic public sector demand remained steady, but net sales of machinery and components
and repair services for overseas markets centered on North America decreased. From an earnings aspect,because net sales for the entire business decreased, and in addition the value of inventory was partially reduced,
operating income was 117 million yen, 72.1% down from the same period of the prior year
(Chemical Products Business)
In the Chemical Products Business, net sales of resin raw materials and UV curing resin for inks, electrodes forferroalloy manufacturing applications in the industrial materials sector, materials for automotive and housing andconstruction applications, and ceramics products for semiconductor equipment manufacturing in the advanced
materials sector, all remained strong. On the other hand, net sales of resin raw materials for the domestic plastics
sector, transport trays for semiconductor manufacturing applications in the electronics materials sector, and resin raw
materials and products at Tomoe Engineering (Hong Kong) decreased. As a result, consolidated net sales for thesecond quarter were 14,845 million yen, 1.1% down from the same period last year.
With respect to earnings, operating income was driven by the growth in net sales for products in the industrial materials
sector and advanced materials sector, which have comparatively high margins, and amounted to 801 million yen,
56.1% up from the same period one year earlier.
(2) Analysis of Financial Condition[1] Assets, Liabilities, and Net Assets
Total assets as of the end of the consolidated second quarter under review were 34,747 million yen, up 1.2% or 406
million yen from the end of the previous consolidated fiscal year. This mainly reflected a reduction of 506 million
yen in notes and accounts receivable–trade, a reduction of 171 million yen in investment securities, and an increaseof 1,169 million yen in cash and deposits.
2

Liabilities were 9,504 million yen, up 4.0% or 363 million yen from the end of the previous consolidated fiscal year,
mainly because of a decrease of 120 million yen in provision for Bonuses, an increase of 324 million yen inadvances received, and an increase of 194 million yen in income tax payable.
Net assets stood at 25,243 million yen, 43 million yen or 0.2% up from the end of the previous consolidated fiscal
year. This mainly reflected a decrease in valuation difference on available-for-sale securities, a decrease in thetranslation adjustments account with overseas subsidiaries associated with evaluation of Japanese yen, and anincrease in retained earnings recorded under quarterly net income.
As a result of the above changes, the equity ratio at the end of the consolidated second quarter under review
decreased by 0.8 point compared with the end of the previous consolidated fiscal year to 72.6%.
[2] Cash Flow Status
Cash and cash equivalents as of the end of the consolidated second quarter under review decreased by 530 million
yen to 4,764 million yen from the end of the previous consolidated fiscal year. The status of each consolidated cash
flow and their factors during the second quarter are as follows:(Net Cash Provided by (Used in) Operating Activities)
Net cash provided in operating activities was 1,580 million yen (increased in cash flow provided by 607 million yen
from the same consolidated quarter of the previous year). Income before income taxes was 789 million yen, andnotes and accounts receivable-trade decreased by 398 million yen, and advances received increased by 329 million
yen.
(Net Cash Provided by (Used in) Investing Activities)
Net cash used in investing activities was 1,763 million yen (increase in cash flow used by 981 million yen from thesame consolidated quarter of the previous year), mainly for the disbursements to time deposits of 1,700 million yen.
(Net Cash Provided by (Used in) Financing Activities)
Net cash used in financing activities was 224 million yen (the same amount as the consolidated quarter of theprevious year) for the payment of cash dividends of 224 million yen.
(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast
There are no revisions to the consolidated earnings forecast figures for the fiscal year ending in October 31, 2016that were announced in the “Financial Results for the Fiscal Year Ended October 31, 2015 [Japan GAAP](Consolidated)” released on December 9, 2015.

3

2. Matters Concerning Summary Information (Notes)(1) Changes to material subsidiaries during the consolidated cumulative second quarter:
There are no pertinent matters to report.
(2) Application of special accounting method in the preparation of quarterly consolidated financial statements:
There are no pertinent matters to report.
(3) Changes in accounting principles, changes in accounting estimates and retrospective restatements:
Beginning from the first quarter consolidated accounting period, the Company has applied the Accounting Standard forBusiness Combinations (Accounting Standards Board of Japan Statement No. 21), the Accounting Standard forConsolidated Financial Statements (Accounting Standards Board of Japan Statement No. 22) and the AccountingStandard for Business Divestitures (Accounting Standards Board of Japan Statement No. 7), and has changed thepresentation of “Net income” and the presentation from “Minority interests” to “Non-controlling interests”. To reflect thischange in reporting method, the Company has made reclassifications to its quarterly consolidated financial statements
and consolidated financial statements for the second quarter of the prior consolidated fiscal year and the priorconsolidated fiscal year.
(4) Additional information(Effect of revisions to the corporate tax rate)
The Act for Partial Revision of the Income Tax Act Etc. (Act No. 15 of 2016) and the Act for Partial Revision of the
Local Tax Act (Act No. 13 of 2016) was enacted in the Diet session on March 29, 2016, and Japan’s corporate tax
rate and business tax rate have changed in the consolidated fiscal year beginning on or after April 1, 2016.
In conjunction with this change, the statutory effective tax rate used to calculate deferred tax assets and deferred tax
liabilities will be revised from 32.26% applied in the past to 30.86% for temporary differences expected to beeliminated in the consolidated fiscal years that begin on November 1, 2016, and on November 1, 2017, and to
30.62% for temporary differences expected to be eliminated in the consolidated fiscal years that begin from
November 1, 2018.
As a result, deferred tax liabilities (the amount after deducting deferred tax assets) were reduced by 60,188,000 yen.
In addition, income taxes-deferred were reduced by 56,375,000 yen, valuation difference on available-for-salesecurities increased by 4,275,000 yen, deferred losses on hedges increased by 27,000 yen, and adjustment on net
defined benefit was reduced by 490,000 yen, all were recorded in the consolidated fiscal year.

43. Quarterly Consolidated Financial Statement(1) Quarterly Consolidated Balance Sheets (Second Quarter)(Thousands of Yen)
End of Previous YearEnd of Second Quarter(October. 31, 2015)(April 30, 2016)

AssetsCurrent Assets
Cash and Deposits

5,295,280

6,464,286

Notes and Accounts Receivable-Trade

14,575,274

14,068,985

Merchandise and Finished Goods

2,883,186

3,072,235

Work in Process

1,428,858

1,193,518

Raw Materials and Supplies

814,139

830,757

Deferred Tax Assets

415,636

433,404

Others170,571

251,167-5,309-7,88825,577,638

26,306,466

4,414,855

4,400,004

Accumulated Depreciation-1,554,623-1,609,826

Buildings and Structures, Net

2,860,232

2,790,178

Machinery, Equipment and Vehicles

4,105,001

4,001,890-3,469,389-3,426,147

635,612575,743Land

1,934,976

1,934,499

Others

1,094,601

1,075,152-1,004,257-993,904

90,343

81,2485,521,164

5,381,669

362,505

327,650

Investment Securities

1,189,880

1,018,573

Guarantee Deposits

83,64594,285

1,506,899

1,527,391

Others122,346

115,589

Allowance for Doubtful Accounts-22,775-23,851

Total Investments and Other Assets

2,879,996

2,731,989

Total Noncurrent Assets

8,763,665

8,441,309

Total Assets

34,341,304

34,747,775

Allowance for Doubtful Accounts
Total Current Assets
Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, Net

Accumulated Depreciation
Others, Net
Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets5

(Thousands of Yen)
Liabilities and Net Assets

End of Previous YearEnd of Second Quarter(October. 31, 2015)(April 30, 2016)

Liabilities
Current Liabilities
Notes and Accounts Payable-Trade

5,836,44

Accounts Payable-Others

557,504

5,843,630
515,511

Income Taxes Payable

182,965

377,931

Advances Received

105,602430,141

Provision for Bonuses

701,392

581,036

Provision for Directors' Bonuses

42,374

17,670Allowance for Product Warranty

122,478

119,140

Others269,841

409,638

7,818,605

8,294,702

Noncurrent Liabilities
Provision for Directors' Retirement Benefits

5,460

5,460

Net Defined Benefit Liabilities

54,052

57,945

1,262,702

1,145,917

Total Noncurrent Liabilities

1,322,214

1,209,322

Total Liabilities

9,140,820

9,504,024

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

22,313,936-363,591

22,595,229

Total Shareholders’ Equity

24,494,965

24,776,258

Accumulated Other Comprehensive Income
Valuation Difference on Available-for-Sale
Securities
Deferred Gains or Losses on Hedges

330,518748-11,166

Foreign Currency Translation Adjustment

415,072

288,952

Total Adjustment on Net Defined Benefit-40,820-20,758

Total Accumulated Other Comprehensive Income

705,518

467,492

Total Net Assets

25,200,484

25,243,750

Total Liabilities and Net Assets

34,341,304

34,747,775

Total Current Liabilities

Deferred Tax Liabilities

Net Assets
Shareholders’ Equity

Treasury Stock6-363,591

210,464(2) Quarterly Consolidated Statements of Income & Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income (Second Quarter)(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2015

April 30, 2016

Net Sales

20,086,760

19,847,846

Cost of Sales

15,891,770

15,863,415

4,194,989

3,984,431

3,260,339

3,065,857

934,650

918,573

Interest Income

8,615

3,263

Dividends Income

10,457

10,166

Rent Income

3,516

3,415

Foreign Exchange Gains

197,408-

Others21,605

11,991

241,60328,837

Interest Expenses

758

63

Commission Paid

7,987

7,995

Sales Discount

2,993

2,830

-

144,664

2,968

2,536

Total Non-Operating Expenses

14,709158,090

Ordinary Income

1,161,544

789,321

Gross Profit
Selling, General and Administrative Expenses
Operating Income
Non-Operating Income

Total Non-Operating Income
Non-Operating Expenses

Foreign Exchange Losses
OthersExtraordinary Income
Gain on Sales of Noncurrent Assets

27,208-Gain on Sales of Investment Securities

58,703-

Total Extraordinary Income

85,911-

1,247,456

789,321

Income Taxes-Current

274,921362,699

Income Taxes-Deferred

49,491-79,188

Total Income Taxes

324,412283,511Net Income

923,043505,809

Net Income Attributable to Owners of the Parent

923,043505,809

Income before Income Taxes

7

Quarterly Consolidated Statements of Comprehensive Income (Second Quarter)(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2015

April 30, 2016

923,043505,809

Valuation Difference on Available-for-sale Securities

87,725-120,053

Deferred Gains or Losses (-) on Hedges-1,349-11,915

Foreign Currency Translation Adjustment

168,631-126,119-2,19920,062

252,808-238,026

1,175,852

267,783

1,175,852

267,783

Net Income
Other Comprehensive Income

Net Defined Benefit
Total Other Comprehensive Income
Comprehensive Income(Breakdown)Comprehensive Income attributable to Owners of the
Parent8

(3) Quarterly Consolidated Statements of Cash Flows(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2015

April 30, 2016

Net Cash Provided by (Used in) Operating Activities
Income before Income Taxes

1,247,456

789,321

Depreciation and Amortization

216,113

199,744

Increase (Decrease) in Provision for Bonuses(128,041)(118,697)

Increase (Decrease) in Provision for Directors' Bonuses(13,260)(24,704)

Increase (Decrease) in Allowance for Product Warranty(3,337)

Increase (Decrease) in Net Defined Benefit Liability(93,373)
8,959

Decrease (Increase ) in Net Defined Benefit Asset(32,270)(20,492)

Increase (Decrease) in Provision for Directors' Retirement Benefits(13,220)-

Increase (Decrease) in Allowance for Doubtful Accounts(1,905)3,654Interests and Dividends Income(19,073)(13,430)758

63

Foreign Exchange Losses (Gains)(29,471)

157,468

Loss (Gain) on Sales of Investment Securities(58,703)-

Loss (Gain) on Sales of Noncurrent Assets(27,208)-

1,544,809

398,929

Decrease (Increase) in Inventories(369,661)(66,849)

Increase (Decrease) in Notes and Accounts Payable-Trade(386,799)

67,652

66,311(40,370)

Increase (Decrease) in Advances Received(364,336)

329,270

Others, Net(57,337)

90,585

1,489,747

1,753,037

Interests and Dividends Income Received

20,317

12,772

Interest Expenses Paid

(766)

(71)

(536,109)(185,050)

973,189

1,580,688

Interest Expenses

Decrease (Increase) in Notes and Accounts
Receivable-Trade

Increase (Decrease) in Accounts Payable-Others

Sub total

Income Taxes Returned (Paid)
Net Cash Provided by (Used in) Operating Activities

9

4,227

(Thousands of Yen)
Second Quarter Ended

Second Quarter Ended

April 30, 2015

April 30, 2016

Net Cash Provided by (Used in) Investment Activities(1,500,000)(1,700,000)

Proceeds from Withdrawal of Time Deposits

800,000-

Purchase of Property, Plant and Equipment(229,331)(23,758)

Proceeds from Sales of Property, Plant and Equipment

29,862-

Purchase of Intangible Fixed Assets(25,364)(20,597)

Purchase of Investment Securities(8,135)(8,569)Proceeds from Sales of Investment Securities

156,049-

Payments of Loans Receivable(1,710)(510)

Collection of Loans Receivable

2,269

2,567

Guarantee Deposits (Increase)(4,449)(11,894)

Others, Net(1,150)(323)(781,962)(1,763,086)(224,516)(224,516)(224,516)(224,516)

214,847(124,078)

Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period

181,557
5,661,622(530,993)
5,295,280

Cash and Cash Equivalents at End of This Quarter

5,843,179

4,764,286

Disbursement to Time Deposits

Net Cash Provided by (Used in) Investment Activities
Net Cash Provided by (Used in) Financing Activities
Cash Dividends Paid
Net Cash Provided by (Used in) Financing Activities
Cash and Cash Equivalents
Effect of Exchange Rate Change on Cash and Cash
Equivalents10(4) Notes on Quarterly Consolidated Financial Statements(Note for premise of going concern)
There are no pertinent matters to report.
(Notes for significant changes in shareholder’s equity)
There are no pertinent matters to report.
(Segment Information, etc.)
Second Quarter Ended April 30, 2015
Information Pertaining to the Amount of Net Sales or Net Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred
Total
Segment Profit

Machinery & Equipment
Business

Chemical Products
Business

5,070,004

15,016,756

20,086,760

20,086,760

-

-

-

-

5,070,004

15,016,756

20,086,760

20,086,760

421,472

513,178

934,650

934,650

Total

Grand Total(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

Second Quarter Ended April 30, 2016
1 Information Pertaining to the Amount of Net Sales or Net Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred
Total
Segment Profit

Machinery & Equipment
Business

Chemical Products
Business

5,002,381

14,845,465

19,847,846

19,847,846

-

-

-

-

5,002,381

14,845,465

19,847,846

19,847,846

117,492

801,081918,573

918,573

Total

Grand Total(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

11

4. Overseas Net Sales (Supplemental Information)
Second Quarter Ended April 30, 2015

(Thousands of Yen)
Asia

I. Overseas Net Sales

Total

2,351,833

1,417,527

3,769,360--

20,086,760

11.7

7.1

18.8

II. Consolidated Net Sales
III. Ratio of Overseas Net Sales to Consolidated Net Sales (%)

Other Regions(Notes)1. Areas including countries or regions are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas:(1) Asia: China, Korea, Taiwan, Thailand and India(2) Other regions: America and Egypt
3. Overseas net sales are sales of our company and subsidiaries made in countries and regions other than Japan.
Second Quarter Ended April 30, 2016

(Thousands of Yen)
Asia

I. Overseas Net Sales
II. Consolidated Net Sales
III. Ratio of Overseas Net Sales to Consolidated Net Sales (%)

Other Regions

Total

2,478,070

545,387

3,023,458--

19,847,846

12.5

2.7

15.2

(Notes)1. Areas including countries or regions are determined based on their degree of geographical proximity.
2. Main countries or regions included in the areas:(1) Asia: China, Korea, Taiwan, Thailand and Vietnam(2) Other regions: America and Egypt
3. Overseas net sales are sales of our company and subsidiaries made in countries and regions other than Japan.

12